Page 9 - FSUOGM Week 26 2022

FSUOGM PERFORMANCE FSUOGM

Europe must make every molecule count,

US gas prices slip on decreased demand

RUSSIA EUROPEAN countries need to make every experienced compressor issues, forcing Rus-
molecule of gas count in the coming weeks as sian state-controlled operator Gazprom to stop
Storage injection rates potential decreases in flows and maintenance operations at one of the three compressor units,
have fallen drastically of critical infrastructure will only heighten the bringing down the effective pipeline capacity.
amid Russian cutbacks. supply shortage. The recent loss of both Nord Stream 1 flows
Countries are exploring creative ways to and the Freeport LNG cargoes exiting the US has
counter this, including incentivizing consumers sent major shockwaves across power markets.
to use less gas in a bid to increase storage levels Impending annual maintenance for Nord
before the gas-hungry winter season. Stream 1 from July 11 to 21 remains on the
Russian gas flows remain flat this week, as cards, which would reduce Russian gas supply –
storage injections follow suit, helping to steady already down 40% - to zero for some time, with
European prices. no guarantee of a start-up date.
Dutch TTF prices remained steady at about Such a move would have significant impli-
$39.98 per mmBtu on June 27 as gas supplies to cations for the European and global market and
Europe held firm, although remaining under push prices even higher.
heavy scrutiny since recent disruptions. Europe must make every molecule count but
Disruption over the past couple of weeks for can remain upbeat that Norwegian gas supplies
the European gas market has dragged on, with continue to hold steady at 300 mcm per day.
the Nord Stream 1 facility continuing to export This may still not be sufficient, however, as
about 60 mcm per day of gas over the weekend storage inventory levels rose by only 8.2 tera-
of July 25 and 26, with flows across the Ukraine watt-hours (TWh) in the previous week, bring-
Transit also holding steady at around 34 mcm ing the European gas storage level up to about
per day 51.2%.
Despite Russian flows, this has been a marked This is a far cry from the average of about 43
reduction from the levels of 150 MMcmd TWh of weekly storage injections for the past
before the Nord Stream 1 pipeline reportedly two months.

Week 25 22•June•2022 www. NEWSBASE .com P9